The Star. TUESDAY, JULY 5, 1904.

Star (Christchurch), Issue 8054, 5 July 1904, Page 2

The Star. TUESDAY, JULY 5, 1904.

Although, perhaps, it is early yet to express a decided opinion regarding the results of the Government's enterprise- in establishing State coal mines it is clear that so far as it has progressed the experiment has proved a success. The statements made to a representative of the " Star " yesterday, by the managing agent for the distribution of the coal, bear abundant testimony to this fact. AUow- ! anoes must, of course, ~be made for the enthusiasm with which Mr M'Dougall naturally views all things connected with his duties, but after allowing a liberal dis- j count under this head we are left with the conclusion that the State minea are destined to be an important factor in the coal industry of the colony. At the present time | their output is necessarily limited. Last week, for instance, it amounted to some 3000 tons, as against more than 14,000 tens mined 'by the Westport Coal Company. But the output, especially that from the Point Elizabeth mine, is growing so steadily that there is good reason to believe th&gj by next winter a considerable quantity or coal from both State mines will be at the disposal of the private consumer. Practically the whole of the present output, as Mr I M'Dougall explains, is needed by the Gov- ■ eminent railways, and any immediate increase is likely to be taken by the navy, [ but any surplus that remains after the railways and the warships have been supplied will be offered to the public* According to the managing agent the various coals which the mines produce possess a combination of most,pf the best qualities found in good coal. The Point Elizabeth article; Mr M'Dougall thinks, is "without excep-. tion the finest household 4 coal in Austrat lasia," and is also highly bituminous, 'while that from the Seddonville mine is "admirably adapted for steam purposes." Perhaps neither coal reaches the standard . of , all round excellence attained by "finest ' Westport," although there is little ' doubt that for a variety of purposes they will always be extremely useful. That between them they will contribute to reducing the price of fuel is not unlikely. At the same time it is evident that in its laudable desire to help the consumer the Government has overlooked one important essential to reduced rates. This is that the high' cost of coal to the consumer is due less to the price charged at tite pit's mouth than to other causes. As we 'have pointed out previously the initial price, of coal is not exorbitant. '■ It is during the passing of the coal from the producer to the • consumer that the price rises -until it "becomes, exorbitant. The ■responsibility for the high charges does not rest, we believe, with the dealers. It has never been alleged, as far as we are aware, that tho retail traders make undue profits or that they exploit their customers unfairly. We are left with the conclusion, therefore, that the cost of carnage and other causes, such as expenses of screening and handling are responsible for the high prices which tie. consumer is called upon, to pay. Having taken one -step in the direction of cheapening the price of coal the State might take another and endeavour to secure a reduction of the other charges.